Gulfport Energy Corp. of Oklahoma is pleased with its first big gas-only well in Ohio’s Utica shale.
The Irons 1-H well, drilled in Belmont County’s Washington Township, is producing more than 30.3 million cubic feet of natural gas per day, Gulfport officials said late Tuesday in a third-quarter earnings call with analysts. That initial production makes the well the No. 2 best-producing well in Ohio. It is “a very strong well,” Chief Executive Officer James Palm said. It is likely that the well will produce 15 million to 20 million cubic feet per day in the long run, he said. “The strong economics of this well appear to be very attractive on today’s commodity price environments and we look forward to drilling a number of wells in the surrounding area during 2014,” he said. The well is farther east than other Gulfport wells in Ohio and producing little in the way of liquids but lots of natural gas. It is a key well because 44 percent of Gulfport’s leased holdings are in the same dry-gas window, he said.
The Irons 1-H well was drilled to a vertical depth of 9,770 feet with a horizontal lateral in excess of 6,629 feet, he said. The lateral was not as long as some other Gulfport wells, but that has not hurt initial production, Palm said, The No. 1 best-producing gas well in Ohio is Antero Resources’ Yountz well in Belmont County with 38.9 million cubic feet per day in initial production. Gulfport’s other wells in the Utica shale have produced significant oil or condensate plus natural gas liquids such as ethane, butane and propane. He added: “We continue to make outstanding wells” in the Utica shale. His company intends to partner with Rice Energy of Pennsylvania to develop wells in Belmont County. Rice will work in Smith and Goshen townships. Gulfport will work in the southern townships: Washington and Wayne. Terms of the agreement were not disclosed.
The two firms may try some longer laterals to boost production, Palm said. Gulfport intends to keep drilling in eastern Ohio with seven rigs in 2014: four in the wet-gas window, one in the condensate area and two in the eastern dry-gas area.